While the benefits of vaping over smoking are well-known, there are some areas which pose a potential risk for vape companies. The most notable of the dangers besides Health Hazard claims from (E-Liquids) are exploding batteries or vaporizers. And if you think as a vape shop owner, e-liquid manufacturer, importer or wholesaler you are immune, think again. If you are selling products with missing advisory warnings, then you have a long legal battle ahead of you. However, a proper risk management program including a vape insurance policy with product liability insurance specific for vape coverage can help you.
Vape Insurance, Why You Must Have It
Unfortunately, defective batteries are not the only thing the vape companies must protect themselves against. For example, let's look at your typical vape customer. The chances are good that they are a former smoker. This means that they may have underlying health conditions from smoking. And thanks to Strict Liability consumers may not sue tobacco companies as a group or a class. Today's legal system makes it easy for them to file a lawsuit alleging major health issues caused by vaping. Not only would you risk bankruptcy trying to fight it, but the chances are good that you will be up against a jury full of non-smokers. Then again if you have e-liquid insurance with product liability (without a Health Hazard Exclusion), you would not have to defend yourself alone, but would have an insurance company backing you every step of the way.
Vape insurance can also protect you against charges of alleged consumer rights violations. This basically when a customer says you claimed vaping was a healthier alternative to smoking but failed to mention that there are other chemicals in the aerosol. Under the personal injury/advertising portion of your liability insurance, you may have coverage for such a situation.
Liability issues are not the only concern for vape companies. You also need to consider your inventory and any equipment that you may have. When you add business personal property to your policy, you will ensure items such as your display cases, inventory, tables, chairs, couches and virtually anything else in your vape shop which is not permanently attached to the building owner’s property is protected in the event of a covered loss. If you own a retail location you should take out a vape shop insurance policy.
A Comprehensive Protection Plan
While vape insurance can help protect you in the event of a lawsuit, you should also make an effort to follow best practices for protecting your business. One of the best things you can do as an online retailer or as a brick and mortar store is to provide your customers with a warning and instructions regarding the safe use of vape products, especially the proper use and storage of batteries. As a seller of the battery, you are liable for any injuries caused by the venting or the explosion.
Vape Insurance Premiums & Limits:
Annual Premiums: start from $2,500 annually
Policy Form: Claims Made & Reported.
Primary Policy Limits: From $250,000 to $5,000,000
Follow Form Excess: $1,000,000 to $2,000,000
Excess/Umbrella Layered Limits: $30,000,000 (subject to availability)
Product Liability Insurance
Tenant Liability/Fire Legal
Business Personal Property
Product Recall Insurance
Product Withdrawal Endorsement
Annual Payment Options:
Full pay or,
Down payment followed by 9 or 10 installments.